PHGC Annual Report 2016-2017

PENNANT HILLS GOLF CLUB LIMITED ABN 12 000 037 856

OFFICE BEARERS

President: Mr. Allan Watson

Vice-President: Mr. Ross Howarth

Captain: Mr. John Buchanan

Hon. Treasurer:

Directors:

Mr. Chris Allen

Mrs. Amanda Stubbs, Mr. Peter Henry, Mr. Phillip Stanton Dr. Vasco De Carvalho & Mrs Anne Goodrick.

COMMITTEES

Business and Strategy: C. Allen (Chairperson), J. Buchanan, P. Stanton A. Watson & A. Jones.

Course:

Playing and Match:

Membership and Marketing:

V. De Carvalho (Chairperson), J. Buchanan, C. Allen, L. Roberts, A. Watson & K. Ferguson.

J. Buchanan (Chair), C Allen, V. De Carvalho , A. Stubbs, L. Roberts, A. Goodrick, A. Watson & D. Maguire.

P. Henry (Chair), V. De Carvalho, A. Stubbs, A. Goodrick, S. Nicolas & A. Watson.

Clubhouse Experience: A. Stubbs (Chairperson), A. Watson, P. Stanton, P. Henry, D. Amos, S. Nicholas, P. Cunneen & R. Hosking.

Clubhouse Project: R. Howarth (Chairperson), P. Stanton, A. Goodrick, A. Watson, R. Stevenson, C. Fraser & R. Hosking

Ladies Committee:

Life Members:

S. Nicholas (President), L. Roberts (Captain), S. Murphy (Secretary), J. Bull, L. Stanton (Handicap Manager), S. Gooley, J. Harvey & S. Moffatt.

Men: A. Gresham & J. Oakley Ladies: M. Sutherland

Delegate to Golf NSW: Mr. Chris Allen

Auditor:

BDH Audit and Assurance Pty Ltd

General Manager: Dr. Robin Taylor

PRESIDENT'S REPORT

It is with great sadness that I note the passing during the year of one of our Life Members, John Ferris.

John joined our Club on 27 July 1948 and remained a member until his death on 12 June 2017, a period of nearly 69 years. In recognition of his outstanding contribution to our Club he was made a Life Member at the Annual General Meeting on 11 October 1993. John was a State Accredited Rules Official, had a handicap in the low single figures and was a member of our first Group 1 Major Pennants winning team in 1971. He was the Club’s delegate to the NSW Golf Association from 1967 to 1974 and was a member of the Board from 1965 to 1974 during which time he was Vice Captain of the Club. He was also for some years the Club’s Honorary Solicitor and was involved in the M2 Motorway negotiations. He was a contributor to the establishment of the Founders Plate event which commemorates the founding members of the Club and all those whose efforts have contributed to the development of the Club.

John was a member of the Armed Forces in World War II and as a result of his Japanese language skills he served in the islands north of Australia and after peace had been declared carried out duties until 1947.

By any standard John was a most outstanding member of our Club. A more detailed account of John’s involvement with the Club is provided in the Obituary section of this Report.

The Year in Review

During the year the Board continued to follow the strategic direction that was established five years ago to enhance the sustainability of our Club as a private members golf club.

I thought it would be helpful in reviewing this year’s activities to reflect on the path that has been followed since 2012 to enhance all aspects of our great Club.

In 2012 our Club was faced with the financial realities of:

 difficult economic conditions as an aftermath of the Global Financial Crisis,

 a declining playing membership base,

 a clubhouse in need of significant maintenance,

 some important course infrastructure requiring renovation and updating,

 the absence of a membership waiting list,

 the inability to charge entrance fees at previous levels,

 a technology platform requiring updating, and

 debt of around $500,000

The Board at that time commenced a programme of engagement with members to determine the aspects of membership which were most important to them and what would improve the value of their membership.

The three major recurring issues were:

 a requirement for flexibility of membership categories to better meet member golfing life stages

 the need for Clubhouse improvements, and

 practise facilities required enhancement.

The Board validated these findings with financial and membership trend data that was available in the private golf club industry generally.

It then embarked upon a programme to improve the Club’s operating profitability and accumulate cash to strengthen the financial sustainability of the Club. At the same time the following priorities were set:

 the development of a more flexible membership structure to provide members with an increased choice of playing membership categories (short-term)

 the enhancement of members’ experiences both on and off the course (short-term)

 the improvement of member facilities within the Clubhouse (medium-term)

 the upgrading of the golf course and practise facilities (medium/long-term).

The strategic priorities started with refreshing the membership categories to bring them up to date with the changing life and golf participation cycles of golfers. Since the introduction of the current categories, the Club has had a net increase of 136 playing members. This is in contrast to the generally declining trend in private golf club membership over the period. At the time of recommending the current membership structure to members the Board indicated that it thought it would take three years to assess the impact of the changes and indicated that after that time a review of the categories would be undertaken.

The review will commence in October this year. Many members have provided feedback on the categories over the last three years and further feedback will be sought as part of the review.

It is fair to say progress has been undesirably slow in the last few years in addressing the priority to improve the member experience off the course. The Clubhouse Experience committee under Amanda Stubbs’ leadership however has worked hard this year to set the foundation for a much more enjoyable clubhouse hospitality experience for members.

Amanda’s report provides an excellent outline of what has been achieved in the last year and what is planned going forward.

The clubhouse facilities priority has continued to be addressed during the year. Members approved major improvements to the clubhouse at last year’s Annual General Meeting and Development Approval for the improvements was received from Hornsby Council on 18th August 2017.

The programme for the completion of the improvements is outlined in Ross Howarth’s report and is the major capital works that will be undertaken this coming year.

In respect to the fourth priority members generally didn’t want to see major change to the Course, other than improvement to our bunkering and an improvement in our practise facilities.

This year the Board will continue the programme to improve bunker playability that commenced in 2014 and will continue to undertake capital expenditure on other existing course infrastructure where required. The possible inclusion of an indoor teaching and practise facility in the Clubhouse improvement project currently under evaluation would enhance the golf related experiences of members.

The prospect of water from NorthConnex has provided a potentially unique opportunity to secure an additional water supply for the course. The Board is dealing with the NSW government, Transurban as well as the NorthConnex contractors but it is not a straight forward matter for many reasons. The prime difficulty is it is expected that it will not be known until 2021 whether a sustainable water supply will be available. Consequently the uncertainty has brought a new dimension to what improvements could/should be introduced to the course and the timing of those improvements. By way of example an extension of our cart paths is on the Board’s agenda however the Board will need to be confident that the course layout will not be changing in the event of NorthConnex water becoming available before embarking on such a programme.

Accordingly until the long term availability and sustainability of a quality water supply from NorthConnex is established the Board has taken the decision that no major course works should be proposed to members or undertaken.

Benchmarking our Club against peers continues to show we are one of the more profitable and efficient Clubs in Sydney. The Club’s financial results for the year are well covered in Chris Allen’s’ Treasurer’s report.

It is interesting to note that the benchmarking suggests we are the 7th largest golf Club in NSW and the 21st largest in Australia in terms of playing membership numbers. I believe however that member size is not the criteria for the success of a Club like ours. Success is about the enjoyment we and our families and friends derive from our being members.

While the Board strives to create a thriving golfing and social, as well as financially sustainable, environment for the Club the reality is that the foundation for success is laid each year by members contributing to and joining in the Club’s activities. Our Club is only as strong as the level of involvement of our membership and we are fortunate to have many members who:

 regularly participate in golf and Club function activities,

 sponsor events,

 assist with major charity days,

 make purchases in the clubhouse or golf shop,

 host private business events at the Club

 volunteer time to assist others learn the game,

 introduce new members,

 maintain gardens and other parts of the course,

 preserve the history of the Club, and

 serve on the Board and committees.

With the completion of the Clubhouse improvements it is hoped that many more members will take the opportunity to enjoy the company of their fellow members and friends in the new surrounds.

On behalf of all members I would like to acknowledge the efforts of our General Manager, Robin Taylor, and his team during the year. We thank you for providing us with an environment in which we can enjoy the Club’s facilities with our friends and fellow members. In particular it is a real pleasure to play on our course which is so well cared for under Richard Kirkby’s direction.

I would like to acknowledge my fellow directors who have directed the Club’s operations in the last year with passion and commitment. Each of them has generously given of their time and talent for the sole purpose of making our Club as enjoyable as it can be for every member. It is a sizeable commitment to be on the Board and on behalf of all members I wish to thank them and also thank their families for being supportive of them making the contribution they do.

Vasco De Carvalho is retiring from the Board after four years. Vasco has chaired the Playing Committee and Course Committee as well as being a member of the Membership, Business and Strategy Committees. Vasco not only brought his considerable expertise to all Board matters but also a willingness to put his views with conviction to ensure that every decision taken was in the interests of the membership as a whole and equity amongst members was preserved and strengthened. One of the enduring contributions Vasco made to our Club was the major role he played in the development of our current membership structure. Vasco’s wise counsel and leadership will be missed.

In closing I would like to thank the leadership of our Lady members for the support and input provided to me and the Board during the year. We are fortunate to have a Ladies committee of the calibre that we do functioning under the positive and constructive leadership of our Lady President Susie Nicholas.

I can once again assure members that all Board members appreciate the trust you have shown in us to oversee the Club’s operations and to set its strategic direction. The upcoming year will provide the challenge of completing the Clubhouse improvements in addition to the ongoing challenges of maintaining a viable golf club but each of us is committed to meeting those challenges to the best of our ability to ensure our Club continues to be a place where all members can enjoy themselves.

Allan Watson President

TREASURER’S REPORT

NET PROFIT

The Club recorded a surplus from club operations for the year of $201,000, made up as follows:

Compared to last year, the result included the following:

 Revenues were $67,000 or 1.2% higher than the prior year

 Operating expenditures before interest and abnormal items reduced by $49,000 or 0.8%

 The operating profit before interest and abnormal items was $116,000 better than the prior year

 Lower subscription revenue than expected principally resulting from fewer 7 Day members

 Lower golf activity revenue than expected due to the extremes of heat and wet conditions in January, February and March

 Course and water treatment plant expenditure of $1,830,000 was marginally lower than the prior year

 The pro shop recorded a break even result for the year

 Bar & catering activities recorded a profit for the year of $122,000 which was $35,000 lower than the prior year

 The net profit for the year of $201,000 was $72,000 lower than the budget of $273,000. Lost revenue during the period of extreme weather resulted in the Club not achieving the budget

SUMMARY OF RESULTS

(Note 1)

Operating profit/(loss) before interest & nonoperating items

Subscriptions (Note 1)

Profit from golf activities (Note 2)

Pro shop profit / loss (Note 3)

Course & WRP expenses (Note 4)

Bar & catering profit (Note 5)

House expenses (Note 6)

expenses (Note 7)

(Note 8)

& non-operating items

& non-operating items193214

Operating profit after interest & non-operating items

# Total revenue disclosed above differs to revenue disclosed in the Annual report as it excludes revenue disclosed as non-operating income and the pro shop income above includes professional lessons and equipment repairs net of costs.

REVIEW OF RESULTS

(Note 1) Subscription revenues

Subscription revenues down on budget but higher than the prior year. The loss of 106 members on 1st July 2016 and the migration of members between categories was partially offset by the addition of 90 new members during the year.

(Note 2) Profit from golf activities

The below budget result for the year is largely due to two factors:

 Competition and green fees were adversely impacted by heat and wet conditions experienced in January, February and March.

 Corporate green fees were significantly below budget, with a continuation of a difficult market to attract larger corporate golf events, combined with reductions in the field size for events booked and budgeted. The small business group strategy has been slow in the take up but continues to be an initiative driven by marketing campaigns and supported by the Boards decision to introduce the Business Golf voucher for 7 Day membership.

(Note 3) Pro shop loss

Pro shop sales revenues were lower than budget and the prior year. The improvement in clothing and merchandise sales was offset by slower equipment sales. Gross margin percentage on equipment sales was also lower than both budget and the prior year.

The value of member benefits taken up during the year in the form of free lessons and ball and glove discounts was $21,000 up from $16,000 in the prior year. A breakeven Pro Shop result which was an improvement over last year was a satisfactory result given the lower activity in January, February and March.

(Note 4) Course & WRP expenses

Course and WRP expenses were contained at levels below both budget and the prior year. There was considerable work required at times in an attempt to keep the course in play, especially during periods of extreme weather and despite this salary and wage costs were only slightly higher than budget. Savings in a number of operating costs and depreciation costs contributed to the overall operating costs remaining below budget.

(Note 5) Bar & catering profit

Sales were higher than budget and last year however overall gross margins lower than the budget and marginally lower than the prior year. Employment costs were higher than budget. Staff costs associated with keeping the clubhouse open when the course was closed or activity significantly reduced as well as the additional staff costs associated with the unexpected departure of two experienced employees and higher cost of interim labour contributed to the result. After lengthy recruitment processes to find appropriate resources in a competitive market key positions have now been filled and feedback would suggest the members are starting to see benefits from the new team members, notably, Steven (Hospitality Manager) and Peter (Executive Chef).

(Note 6) House expenses

House expenses were lower than budget and last year as a result of the containment of maintenance costs ahead of the clubhouse refurbishment. Further savings in other expenses when compared with last year’s expenses offset depreciation increases.

(Note 7) Administration expenses

Administration expenses were significantly below budget and the prior year due to:

 Lower salary costs resulting from a reallocation rather than a direct replacement of responsibilities following the departure of Walter King as the Club’s Operations Manager

 Lower marketing & advertising costs than those originally forecast through the budget.

(Note 8) Other income

Other income was higher than budget and last year following the trade in of course equipment and a higher utilisation of the payment plan to pay for subscription and house accounts.

The Club generated free cash flow during the year of $453,000 after routine capital expenditure of $129,000. After paid development capital expenditure of $490,000, the net cash deficit for the year was $37,000. Paid development capital expenditure includes $112,000 for the 9th hole bridge which was incurred last year and in creditors at the last year end.

The main capital expenditure items during the year were:

The clubhouse redevelopment costs comprised architects fees of $120,000 plus surveyors, inspection and DA submission costs of $65,000.

FINANCIAL OUTLOOK

A detailed operating and cash flow budget has been completed for the 2017/18 financial year. The budget is summarised in the following table:

Operating profit before interest & non-operating items

Subscriptions

Profit from golf activities

Pro shop profit / loss Course & WRP expenses

Bar & catering profit (Note 1)

House expenses (Note 1)

The ongoing challenge for the Club in 2017/18 is the retention and growth of its membership base. With the introduction of new membership categories now in their 3rd year The Board plans to undertake a review of the membership changes. In addition subject to satisfactory pricing from the upcoming tender process the Club embarks on the refurbishment of the clubhouse, a second important step in securing the long term financial viability of the Club.

At 30 June 2017, the Club had cash at bank and on deposit of $3.5 million. This cash position provides a strong basis for the Board’s major capital expenditure plans for this coming year, the upgrading of the clubhouse.

FINANCIAL MANAGEMENT INITIATIVES

Last year’s Treasurer’s report indicated The Board had approved the initiative towards the goal of converting the main trading operations of the Club to cashless activities. Settlement of subscription and house account balances by direct debit which was introduced to members last year is increasing in popularity. The Board remains committed to this initiative. Recent changes to require card swipe at the counter and thereby improve the accuracy of transaction recording is a step in this process. Member confidence in the recording of transactions to an account will assist to ultimately facilitate the transition to a member Club where transactions are on account and settled monthly through automated processes.

KENDAL BINNS JUNIOR FOUNDATION

Donations to the Foundation in the 2016/17 year were $5,204 and the Foundation has spent $15,348 on a number of initiatives to improve the golfing skills of the Club’s junior members and to encourage the growth of junior membership numbers.

CONCLUSION

I would like to thank Craig Usher and Robin Taylor for their extremely hard work and commitment in the financial management of the Club in what was another challenging year. I would also like to thank the members of the Business Committee, Allan Watson, John Buchanan, Phillip Stanton and Andrew Jones for the guidance and assistance they provided during the year in steering the Club’s financial operations.

Chris Allen Honorary Treasurer

CAPTAIN’S REPORT

As I write, I am close to completing my second year as Captain and my ninth as a Board member. I’m also sitting on the deck of a cruise ship in the Baltic, the day after bumping into some fellow members in the streets of Tallinn, Estonia!

My duties this year as Captain have included chairing the Playing, Junior & Match Committee and sitting on the Course Committee under Vasco de Carvalho and the Business & Strategy Committee under Chris Allen. Of course, I am also a Board Member. The chairs of those committees have reported to you elsewhere in this annual report so I will limit myself to those parts of Playing & Match relevant to all members and to Men’s golf. Ladies’ golf is also covered elsewhere here.

I’ve also had the fun of co-authoring the Captains’ Newsletter with Lesley Roberts. Some of the fun had to do with convincing the newsletter graphic designer of the correct location for the apostrophe in Captains’. There was also the unintended and false rumour of Keith Smith’s departure I started by the incorrect use of the word “erstwhile”. Thanks to the 20 or so members who pointed this out I am now a better educated individual!

Playing

Statistics suggest that we have completed a most successful golfing calendar. During this year we continued the practice of recording non-competition as well as competition rounds. We are also tracking booking activity and pace of play to ensure as many people can get a game when they want and that when they do it is at an acceptable pace. This information is helpful when contemplating how our most important asset is utilised and the value members derive from it. A reasonable pace of play is vital for the retention of members and enjoyment of the game.

We have observed markedly less churn in member bookings from what was experienced a year ago. Thank you for improving our shared experience.

No gold star I’m afraid on either pace of play or course care by members. We don’t need to achieve the sub 30-minute 9-hole times of Jared Dries, Roddy Main & Co! However, analysis of statistics over the last 5 years show no improvements in round times for the rest of us. And, even casual observation of our fairways, bunkers and greens show a need for more caring for our course. A little extra effort by each of us in both these areas would be rewarded with a worthwhile dividend for all members.

Weather has had some significant negative impact on playing numbers this year. The extreme heat and wet of January through March caused unwanted disruption and knock-on effects for the Club. Despite that, we continue to see high participation rates on most days of the week.

PHGC hosts three major events each year - ASX, MonSTaR and Gold Key Financial ALPG ProAm – as well as a long list of Junior and Senior golf events. These all require an army of volunteers to execute –starters, referees, spotters, BBQ chefs, and so on. This year, like others, we are indebted to those volunteers. Thank you.

Men’s Representative Golf

I would rank our representative golf year a successful one. A short summary follows.

Major Pennants

Our Major Pennant side returned to Division 1 (where we belong��) this year. Ably lead again by Murray Fogarty and Adam Cordony the team had some ups and downs but it was a solid season. We didn’t progress to the semis but we easily avoided the relegation playoff. I would say the team has established a solid Division 1 platform and I look forward to watching next season.

Eric Apperly

As I write our Apperly team is ready for their semi-final at Windsor against Bonnie Doon on 27 August. Fortunately, I’ll be back in time to see them take on a tough opponent, and fingers crossed, progress to the Final. Geoff Richards is the team manager. Congratulations on an excellent season.

Junior Pennants

With a fresh squad of players all relatively new to the matchplay format, the 2016 team gained valuable experience through the campaign, unfortunately coming up second best in all their matches. The highlight of the season saw the team play their final match at Royal Sydney two weeks before the Australian Open, which was a great thrill playing with the grandstands and marquees all setup.

Masters Pennants

Our Masters team had an up and down season and didn’t make it past the round robin stage this year. Kell Ferguson and Damian Maguire were the leaders of the group. There is plenty of team spirit there and it was obvious to me that these guys are masters at enjoying the contest. I know they’ll be successful soon.

Pack Cup

As we didn’t play to our normal high standards throughout the competition, on Sunday 27th November 2016 we played Pymble for the coveted (well, not really) Wallace Toogood Trophy (wooden spoon). This is definitely a trophy you don’t want to win and we can once again proudly boast that we are the still the only club not to have won it. Congratulations to Don Allen who won all of his matches this year and thank you to everyone who helped to make this an enjoyable Pack Cup season.

Pack Plate

The PACK Plate team had a tough campaign in 2017, unfortunately only winning one of their four matches which came against Killara at Pymble. Steve Walker and Steve Rowe were the best performers for PHGC, with Concord taking out the Plate.

Mixed Pennants

The Mixed Pennant side went through the home and away season winning 5 of a possible six matches, finishing top of their pool ahead of Asquith, Muirfield & Shelly Beach, earning them a Quarter Final berth against The Coast which they unfortunately lost in a close battle 3-2.

Pennant Hills Cup

Our own Andrew Richards won his second consecutive Pennant Hills Cup with a fine 68, identical to his previous winning score. I suspect Andy’s rapidly growing reputation will start to attract some stiffer competition in coming years. Good luck trying to get that trophy off him!

Golf Shop

The primary shared interest at PHGC is our sport. Our golf shop team, ably lead by our Head Professional, Geoff Black, is its enabler. Geoff’s leadership has helped deliver a successful year financially while maintaining very good quality service to members. Geoff is closely involved in all aspects of golf at the club and is an especially talented teacher. Geoff has also been responsible for the establishment of the successful golf travel program which many members have already enjoyed. These tours are open to all and are accompanied by one of our golf professionals. The Board’s policy is for these trips to be priced on a cost recovery basis.

Rachel Bailey, our dedicated teaching professional, has again excelled at bringing on the talents and enthusiasm of our representative teams, juniors and beginners. Rachel has also honed the games of many of our experienced members providing a rejuvenation of their enjoyment and for many an immediate spike in their scores.

Lauren Hibbert and Chris Abbott have joined the team and made a positive impact in the shop. Andrew Potter has assumed responsibility for Golf Administration and Business Golf and is also off to a great start.

Keith Smith is our starter, and buggy and cart coordinator and continues to be extremely helpful to me in my Captain’s role. Combined, they deliver the great golf experience which members enjoy. We hope Liam Sheils our new trainee will soon feel at home and will see members benefiting from his previous experience from working at other clubs.

We also have a fine group of young people who are part of the team; Amie Maguire, James Conn, Matt Davidson, Jared Dries, Hamish Murray and James Skuodas. Thanks for your work.

I would also like to mention Chris Allen who in the last year has offered at every turn to assist in limiting my commuting where possible. My last thank you is to Robin Taylor who aims to provide stability, improved infrastructure and a team dedicated to the service of members.

Congratulations to Andrew Richards for winning the Club Championship in 2016 and to the other winners of our major team and individual events listed hereunder.

Event Winner

Club Champion

“A” Reserve Champion

“B” Grade Champion

“C” Grade Champion

Senior Champion

Junior Champion

Pennant Hills Cup

Foursomes Champions

AE Marks Cup

President’s Cup

Captain’s Cup

AY Gresham Cup

E J Hyde Cup

Winter Cup

Spring Cup

Summer Cup

Autumn Cup

Founder’s Plate

Mixed Fourball Knockout

Gold Button

50 and Over

60 and Over

Left Hander’s Cup

Sep Johnston (February) Eclectic

August Eclectic (Wednesday)

Vic Kendall Tyro Trophy

Lilian Marks Cup

Mixed Foursomes

Family Plate

Andrew Richards

John Russell

Andrew Barbour

Kerry Sunderland

Bill Bell

None

Andrew Richards – Pennant Hills Golf Club

Gabriel Ormaechea & David Bailey

Rhys Bateman & Dan Brain

Michael Cahalane

Glenn Sunderland

David Grabham

Gary Lane

Peter Hill

Mark Cain

Ross Henderson

Glenn Sunderland

Paul Toohey

Margaret & Christopher Coulton

Jarrod Loats

Bruce Bollom

Phil Gilbert

Shady Mikhael

Matthew Brewer

Nick Crews

Mark Wilkinson

Wendy & Tony Gresham

Deborah Bennett & Lachlan Walker

Allan & Adam Watson

President v Captain Captains

Naggers Cup

Club Cup

John Buchanan Captain

Wayne Abrahams & Bev Charles

Lindsay Casey, Cheryl Hayres, Ian Shand, Amanda Tucker

COURSE COMMITTEE REPORT

The year 2016/2017 threw out the usual and the unusual challenges associated with the vagaries of our weather. Irrespective of whether you believe in "Climate change" the facts are that Sydney endured a record run of daily extreme hot weather in February followed by often torrential rain which also set new bench marks for rainfall on our course in March. This led to the proverbial "Perfect storm".

Our course superintendent Richard Kirkby was concerned with the rapid deterioration in our greens during the heat wave with turf discolouration of the greens between a Thursday and the following Sunday. The greens were clearly under major stress and the standard best practice of repeated daily hand watering (syringing) to cool the foliage was not protecting the greens. Richard sought the assistance of David Worrad a well-regarded and qualified agronomist of over 25 years experience.

Following extensive review of all the greens and considering all possible causes the working theory was that the practice of daily hand watering to cool the leaves was in fact applying minimal amounts of water to the greens due to the rapid evaporation in the extremely high temperatures. This also meant that there was a residue of sodium and chloride salts on the leaves, leading to the additional drying out of the turf from the osmotic stress created by the salts. The temporary closure of the most affected green the 18th proceeded with the immediate use of potable water to irrigate the greens.

Thankfully the core sampling of the greens demonstrated that the root system was not compromised and in fact comparisons with similar core sample results from 1995 showed little change to the root system. We are indeed fortunate that despite the very significant age of the vast majority of our greens their general condition has been well maintained and nurtured through the expertise and care provided by Richard and his marvellous team.

The heat trial of February was then followed by incessant rainfall. The most affected greens were 6 / 9 / 18, and close monitoring and nurturing saw the gradual recovery of all greens apart from the 18th. Unfortunately the 18th green due to the original assault from the heat followed by the high rainfall on a background of relatively poor soil profile and drainage needed to have almost two thirds of the turf replaced with the turf from the chipping green besides the practice nets. A fantastic job by the Grounds staff in meticulously laying the replacement turf led to a reasonable playing surface in a relatively short period of time.

Several operational processes will be changed as a result of the above experiences not the least of which surrounds the practice of daily hand watering of the greens with our recycled water in extreme heat conditions. In similar heat any hand watering will be with potable water. The need for continuing the practice of regular aeration plus sanding is seen as important with the knowledge that drainage works on a number of the greens will need to be undertaken in the foreseeable future as well as possible reconstruction of the more problematic greens eg 9th and 18th. A stressful time for not only the turf!

Whilst the significant events in February and March are etched in many of our memories this year further highlighted that we as Members are incredibly fortunate to have our major asset so well and professionally managed. Richard Kirkby, his deputy Spencer Davison and the entire Team deserve our recognition and appreciation. The general presentation, playability and aesthetics of the Course are of a consistently high quality. The clearing and garden works throughout the course and in particular associated with the completion of the bridge on the 9th hole really make the visual and natural experience independently enjoyable regardless of the standard of one's own game of golf. The efforts of a band of our members in volunteering to assist with clearing the debris along the fence on the 1st and 2nd deserve acknowledgement.

The year saw the continuation of the Bunker Program. The construction of new bunkering around the 12th green was completed a little later than desired which meant that the surrounding grass recovery needs to wait until the warmer months. The filling in of the fairway bunker on the 2nd and the green side bunker on the 3rd were also completed with their replacements being visually pleasing and still provide the desired deterrents and playability. An "in-house" reshaping of the front left hand green side bunker on the 16th should commence in Spring along with an enhanced bunker maintenance program throughout the course to improve our most adversely remarked upon component within the course. Hopefully the continued attention to this part of our course reaps the rewards intended and lifts the overall standard of our bunker experiences.

The drainage of the fairways and green approaches were also improved with additional drainage and sand grooving completed on 10th, 16th and 17th holes. Drainage on the green approach on the 11th should also be completed by the beginning of Spring.

The principles around safety, risk management, playability and impact on viability and aesthetics have guided our ongoing tree removal and trimming program. Following the plan from an authoritative arborist whose credentials and plans were endorsed by Council we continue to thoughtfully attend to this component of caring for our environment and minimising risk for golfers and staff.

This Report merely tries to provide a summary and flavour of the enormous efforts and work undertaken to provide and maintain our Course to the very high standard which we appropriately expect. It is essential that all Members take personal responsibility to assist with the daily care of our golf course with attention to the damage done by divots on our fairways and green approaches, pitch marks on greens and the fair playability in bunkers by properly raking foot prints and divots.

The professionalism and dedication of all our Grounds Staff led by Richard Kirkby and Spencer Davison is why we continue to enjoy our beautiful and challenging golf course. The input and leadership of our General manager Robin Taylor certainly deserves recognition as does the tireless involvement of our Captain John Buchanan. The Course Committee has been faced with even more challenges than usual but never shied from its role and responsibilities. Besides the Board Directors who were always active in the committee we were fortunate to have the Ladies Captain, Lesley Roberts and Kell Ferguson who was a co-opted to join the committee. Lesley and Kell were both extremely valuable in contributing to the "colour and depth" of discussions and decisions which have provided the Membership with a course in which I believe we can be rightly proud.

Good Golfing!

Vasco de Carvalho Chairperson, Course Committee

CLUBHOUSE EXPERIENCE

COMMITTEE

As part of the Club’s strategic aim of being the Members’ Club of choice and given the membership’s overwhelming support of the Clubhouse upgrade, it was felt that a new committee should be formed. This committee will be dedicated to improving the experience of our members around the Clubhouse. Our main goal is to have our members back, enjoying the new surrounds of our clubhouse, dining more frequently than just after their game of golf and a place they call their second home before the opening of our redeveloped clubhouse. As I write this report, I am confident that we have started the necessary momentum to deliver on our primary goal.

The Committee undertook a major review of what we had on offer and compiled the feedback received from members. We determined that our main focus needed to be our food & beverage offering, Member service and the Club’s social calendar for both our members and their guests.

Our first task was to employ a new hospitality manager, who would oversee a team to deliver improved services in all areas of hospitality. Steven Fairhurst brings with him over twenty years in hospitality and having previously worked for the Hilton Group in South Africa. In such a short space of time, Steven quickly recognised some of our weakest areas. To strengthen these areas, we employed Merve Isik to look after Member services in the Member Lounge and Peter Barter as Executive Chef. Steven’s team now consists of Peter Barter (Executive Chef) and Siobhan Reeve (Events) providing a mix of local and industry experience to lift the Clubhouse Experience.

Our hospitality staff continue to undergo training in both food and beverage service & delivery, which is an area that has not had much focus to date. Our wine list has also had in depth analysis and is an ongoing part of our beverage makeover. I thank Ross Jackson, Mal Williams and members who have helped Steven with this transition.

Quality coffee and consistency has been a problem area for quite some time. Steven continues to explore other options available to the Club while Staff are receiving regular barista training and will be educated on the revamped wine list and beverage options.

On the social front, our club events team led by Deb Amos has again delivered events with zest. I would like to thank Deb, Ann Elsley, Karen Patterson, Su Maxwell, Robyn Raymond and Christine Dennis for their dedication in bringing something special and memorable to our Club events. You have put the 'buzz' back into our events and we look forward to the years ahead as our event list grows.

Many events have been held including the introduction of our 'Club Saturday'. This event will be our major mixed event of the year and will be held each year on the first Saturday of May. We hope to see this event grow in stature to eventually become the ‘must attend’ mixed event. The Masters Breakfast was again a successful morning. Every effort will be made this year to reinvigorate our Sportsmen’s Night which has seen declining attendances for the last few years. This event is viewed as one of the two major male only social events each year and traditionally has been well patronised and greatly enjoyed by members and their guests.

As we have been without a head chef at the Club for a period of time, we have been hesitant to introduce too many events this year. However, with Peter as our new Executive Chef we are set to improve the offering of our social events. We hope the final quarter of 2017 and a full calendar for 2018 will re-ignite our food & beverage experience within the club.

The committee this year comprised Allan Watson, Phil Stanton, Peter Henry, Susie Nicholas, Deb Amos, Pam Cunneen, Robin Hosking, Robin Taylor, Steven Fairhurst and myself. It has been a pleasure to work with such clever and innovative individuals. We look forward to the coming year and believe we can deliver a much improved F&B experience by the time our new grand clubhouse is opened.

Amanda Stubbs Chair, Clubhouse Experience Committee

CLUBHOUSE REPORT

At the time of writing, we are within days of receiving formal approval of the Development Application (DA). At the time of members reading this report, the approved builder will have just started, or is about to start, on site.

Although the wait for DA approval has been frustrating, we are heartened by the fact that there has been no indication from Council of any concerns with regard to the planned changes to the building itself or the immediate surrounds. Instead, the latter stages of their deliberations have centred on operational matters such as licensing law adherence, opening hours and – one from left field – the requirement to plant one shade tree in the car park for every six planned parking bays. When reminded of the vast number of wellestablished trees that have been providing shade for decades, this item was resolved.

Immediately after lodging the DA, we issued an invitation to all of our near neighbours to an information evening at the club to learn of our plans. The fact that no-one turned up over the two hour period was readily taken by us as neighbourly endorsement and this was communicated to Council.

Since the last presentation to members of the Clubhouse plans, we continued to focus on options for members and an idea was planted that soon became a distinct possibility -- an indoor teaching/practice facility housed alongside the Proshop within the lower level of the Clubhouse. If progressed our professional staff will have the use of the very latest computer based technology with which to study your technique and improve your game. Few golf clubs would have a facility such as ours and this mirrors the key plank of the Clubhouse project, to provide improved facilities for our members to enhance the enjoyment they derive from their club.

While Council are deliberating we have pushed ahead with preparing a list of builders to be invited to tender as well as bringing together all elements required for tender documentation. This will be ready for presentation to the panel of tendering builders in the third week of August. The following eight week period will see the tenderers preparing and presenting their submissions followed by our evaluation, negotiation and final selection of the preferred builder.

Which brings us back to the opening paragraph with construction commencement occurring in close conjunction with our AGM and members reading this report.

Your club is very fortunate to have such a professional and dedicated group of members as Phil Stanton, Rob Stevenson, Robin Hosking, Clare Fraser, Anne Goodrick, Allan Watson and Robin Taylor to give their valuable time and expertise to the Clubhouse Committee. ABEO Architects are wonderful partners with us and we are very grateful for their leadership, their creativity and their efficient management of the project. To Daniel Wilsdon, Katie Shuttle and Kelvin Murray goes our very great thanks.

Ross Howarth Chairperson, Clubhouse Project

MEMBERSHIP AND MARKETING REPORT

In 2014/15 the Board and Membership committee undertook a major review and realignment of the club’s membership categories, with a focus on a sustainable solution that catered to members needs throughout their golfing life-stages.

In 2016/17 we welcomed 90 new members to the Club, this intake of new members builds on the 135 new members that joined in the prior year again reflecting the appeal of the Club and our refreshed membership categories. It also reflects the efforts of existing members to introduce their family and friends to the Club and the hard work undertaken by our Membership and Marketing Committee. Our Lady Member campaign helped contribute to the pleasing total of 29 new ladies that joined the Club during the 2016/2017 year.

Revenue trends and daily field sizes continue to be monitored by the Board and given current trends there is a growing possibility that some categories of membership may be closed to new members during the course of the 2017/18 year.

Recruitment and retention requires continuous effort. Our particular targets to fill our category gaps continue to be 6 Day Ladies and 7 Day & Flexible under 40’s and we continue to focus on membership value.

Sadly, during this membership year these members passed away; John Ferris, Harold Goodwin, Paul Griffin, Alan Knight, Geoffrey Lumsden, Joseph Matthews, Vincent Pellegrini, and Gregory Waterson. We honour them in our memories and offer our condolences to their family and friends.

The introduction of ClubLINKS for external marketing report has helped raise the quality of the Club’s marketing materials and has helped the Club explore the benefits of social media in a structured fashion.

I would like to thank the Membership & Marketing Committee Members for the continued support, innovative thinking and good humour they bring to the tasks at hand.

There are many people who contribute to the sustainability of our membership. Your committee this year comprised Allan Watson, Amanda Stubbs, Vasco de Carvalho, Anne Goodrick, Susie Nicholas, Robin Taylor and myself. It has been a pleasure to work with such clever and innovative individuals.

To the many others who have helped and especially to those of you who have introduced your family, friends or colleagues. Thank you.

Peter Henry Chairperson, Membership and

Marketing

MEMBERSHIP CATEGORY STATISTICS

OBITUARY: JOHN CHAPMAN FERRIS 1924-2017

John was one of Pennant Hills Golf Club’s longest serving members and most prolific contributing member having joined on 27 July 1948 and remaining until his death on 12 June 2017 (nearly 69 years).

John attended Sydney Church of England Grammar School (Shore) and was an outstanding all round student. He gained an excellent pass in the Leaving Certificate in 1942 and won the School Colours for cricket and athletics. John endeavoured to join the R.A.A.F. upon leaving school but was rejected due to poor eyesight. He was taken into the Army and became an expert in Signals. He subsequently undertook an intensive course in the Japanese language and was used as a translator of captured Japanese documentation. He was then posted to the islands north of Australia and at the cessation of war took part in war crimes trials and the general repatriation of the Japanese prisoner of war. John was “demobbed” at the end of 1946.

Such was his contribution and commitment to the Club that he was made a Life Member at the Club’s Annual General Meeting on 11 October 1993. As part of the motion to appoint John, Vice President Jim Gillies made mention of his many outstanding contributions and in particular to his exemplary conduct and that he was a role model for the membership of the Club.

John was State Accredited Rules Official, had a handicap of 1 and represented the Club in numerous events. He was a member of our first Group 1 Major Pennants Winning team in 1971. Probably John’s most outstanding achievements was to win the Elanora Cup in the early 1950’s against the State’s best players including Harry Berwick and Noel Bartell and other outstanding golfers of the day. John has had two holesin-one at the Club (1975 and 1996). He was the Club’s nominated Delegate to the NSW Golf Association from 1967-74.

John was a member of the Board from 1965 to 1974 the last 3 years as Vice Captain of the Club. On leaving the Board, the then President John Thomson thanked John for the manner in which he carried out his duties as a Board member and Vice-Captain and NSW Golf Association delegate and he commented on the esteem in which he was held both within the Club and the golfing world. John was for many years the Club’s Honorary Solicitor and was deeply involved in the M2 Motorway negotiations. He also was a strong advocate for course construction, especially in relation to installing fairway bunkers and seeking some water hazards on the Course.

John won a number of the Club events, qualified many times for the Club Championship and won two Club Foursomes events in 1953 and 1955 and the Osborne Shield. He was one of the original contributors to the establishment of the Founders Plate which commemorates the founding members of the Club and all whose efforts have contributed to the development of the Club.

The Ferris family have presented to our Club John's trophies and his many notes and copies of his correspondence when a member of the Board. In addition his course drawing recommendations and comments are included. They make very interesting reading.

By any standard John was a most outstanding member of our Club.

LADY MEMBERS’ REPORT

All activities for 2016-17 are detailed in the Ladies Annual Report.

Ladies Committee for 2016-17

President: Susan Nicholas

Captain:

Secretary:

Lesley Roberts

Sandra Murphy

Competition Manager: Lyn Stanton

Joy Bull

Sally Gooley

Jenny Harvey

Sally Moffatt

As a result of the drive for lady members at the beginning of 2017 we welcomed seventeen new lady members to the club. A majority play golf or are returning to the game and they have joined the other ladies in the field. Rachel Bailey held clinics for those who had not played before and they are gradually getting their handicaps so they can join the rest of the ladies in the competitions.

As well as the major golfing trophy events that are held each year, the ladies run a number of competitions to encourage participation and enjoyment. These include St Patrick’s Day, the Cancer Charity Day and the High Tee Classic. In acknowledgement of the shortest day of the year we held a Purple Day. The ladies played the Purple Course which Rachel Bailey has designed for her juniors. All the holes are shortened significantly. Many enjoyed the challenge this provided.

Rachel Bailey’s Junior Development Program is such a success there is a waiting list of young people wishing to join the program. Olivia Kerr, a product of this program, was recognised this year as the lady member with the most reduced handicap and the most improved golfer. Nicki Howlett is very involved with this program and we thank her for her contribution.

Our third LPGA PRO-AM event was held in January and was once again a well organised and exciting event. Eighty-five professionals teed it up over two days, providing many members, both men and women, with the opportunity to see how the “real” golfers perform. Thanks to all those who participated or assisted in very many ways over the two days.

Last November when the greens at Pennant Hills were being renovated, the ladies committee organised a mystery day trip to The Springs Golf Club at Peats Ridge. More than fifty ladies took part and no one, except the organisers, knew where they were going until the bus delivered them to their destination. It was a very successful day and there are plans for another one this year. For the autumn greens renovation the ladies returned to Magenta Shores for two days of challenging golf and socialising. These trips are a feature of our calendar and the committee works hard finding places that offer good golf and accommodation each year.

In May twenty-three ladies travelled to Adelaide with Rachel Bailey for four days of golf and one day in the Barossa Valley. They played Glenelg, Kooyonga, The Grange and Royal Adelaide. Each course presented its own challenges. Rachel spent time with each player giving useful tips which was appreciated.

The Ladies Championships Finals Day was held for the first time on Thursday in 2016. Many ladies were able to play golf as well as watch the matches. Seventy ladies enjoyed a high tea while the presentations were made. This change was well received by most and will continue this year.

We continue to provide our members with the opportunity to compete in interclub Pennant competitions at all handicap levels, participating in six Friday and two Sunday competitions. Our fabulous Grade team of Deb Bennett, Liz Van Hooven, Kathy Eldridge, Nicki Howlett, Hannah Sneath and Mimi Elina topped the ladder in Division 2 and will move to Division 1 next year. Other teams were not quite as successful, but all players give of their best and compete in the true spirit of the game. Lunch is sometimes the highlight of the day!

Two interclub days were enjoyed by all who participated. At home to Castle Hill we regained the trophy; away to Oatlands we couldn’t compete with local knowledge; the final match up against Avondale is yet to be played and hope abides for a home win.

The Pro Shop under the leadership of Geoff Black provides a valuable service to the ladies and it is appreciated. Thank you to Keith Smith for being at the club early on Mondays and Thursdays to start our competitions. To Andrew, Lauren and the other trainees thank you for all you do. Of course enormous thanks to Geoff and Rachel for their teaching and encouragement.

We are very fortunate to have Moya Shepherd as a member of Pennant Hills. Moya’s generosity of time and her knowledge of the rules of golf are much appreciated. This year Moya ran four seminars on the rules of golf for the ladies with no more than ten in the group. This small group format was very successful. We would also like to thank Moya, Sue Rogge and Lesley Roberts for being the referees of our major knockout competitions.

Many lady members share their expertise in a number of ways around the club. Debbie Amos, Robin Hosking and Pam Cuneen are on the Clubhouse Experience Committee chaired by Amanda Stubbs. Debbie is the driving force behind many of the events held at the club such as the successful Children’s Christmas Party, Club Saturday and the Trivia Night. Robin is also on the Clubhouse Committee with Clare Fraser. The proposed renovations are keeping them busy. The time and contribution they give is appreciated.

The theatrical talents of Trish Johnson and Lisa Hamer were on display again with the production of Starstruck which followed our annual Christmas Dinner. They bring out the hidden thespian in many of our lady members. It is always a very entertaining evening. A lot of time and effort is given by all involved and it is greatly appreciated. We all look forward to seeing what they will come up with next.

The Tuesday Ladies Bridge Group coordinated by Sue Rogge and Carolyn Brereton is always well attended. There is a strong camaraderie amongst the ladies who play regularly and any one is welcome to join them. Kay Brunner, Kay Temple and Leanne Goodall organise the monthly Friday Bridge Day which is not just for the ladies. Bridge is an important social activity for many of our members particularly those who may no longer be out on the course. Most days you come to the club you will find a group playing.

Our thanks to Joan Eyles and Lyn Stanton for looking after the weekly Pilates session at the club. The numbers have increased this year but more would be welcome. We also need to acknowledge Margie Fairfax and Joan Rutherford who coordinate the flower roster. The efforts of the ladies who are on this roster are appreciated by us all when we come to the locker room. Thank you too to Lyn Isles who keeps our library in order.

A big thank you to Ron Harper and Ann Crisp who manage the club’s History Room. John Wall and Bruce Jones have joined them this year, one of their goals is a digital record of the photographs of the major trophy winners and other events held at the club going as far back as possible. Their work will be of great benefit to the Club in years to come.

Kay Temple and Jan Spears are our Veterans Delegate and Assistant again this year. Thank you to both ladies for their efforts and hopefully we will be treated to Beverley Thompson’s beautiful daffodils again this year on Veterans Visitors Day.

One of the joys of playing golf at Pennant Hills is the beautiful gardens around the course. Our horticulturalist, Rod Fletcher, does a wonderful job. Many lady members have adopted a garden assisting Rod by keeping the weeds at bay. Thank you to these ladies for their efforts: Chrissie Grier, Judith Grant, Lyn Isles, Chris Kevin, Cheryl Hayres, Ann de Carvalho, Alison O’Sullivan, Gail Holsgrove, Rhonda Parkinson, Lyn Goodsir, Pauline Sunderland, Lesley Roberts, Margie Dearlove, Clare Fraser, Naseem Chopra, Robin Hosking, Annie McDonald, Helen Sugden and Maggie Rowe.

Major Trophy winners for 2016 and 2017:

Club Champion 2016: Kathy Eldridge

Bronze 1 Champion 2016: Barbara Weiley

Bronze 11 Champion 2016: Annie Booker

Pennant Hills Cup 2016: Grace Kim (Avondale)

Pennant Hills Bronze Salver 2016: Jae Kim (Oatlands)

Presidents Cup 2017: Anne Eldridge

Captains Cup 2017: Helen Sugden

Singles Knockout 2017: Margie Dearlove

FourBall Knockout 2017: Debbie Amos and Sandra Murphy

Foursomes Champions 2017: Anne Eldridge and Rhonda Parkinson

Bronze 1 Foursomes 2017: Margie Dearlove and Lyn Stanton

Bronze 11 Foursomes 2017: Lucie Gabb and Robyn Raymond

On behalf of the lady members, I would like to thank the Board Members for their hard work over the past twelve months. The preparation for the proposed clubhouse renovation has been time-consuming and we are lucky to have board members with the appropriate expertise to manage this. Even while this has been going on they have ensured the member’s golfing and social experience is not compromised. We are already benefitting from the improvements in hospitality with the recruitment of Steven Fairhurst, Merv Isik and Peter Barber who, along with Siobhan Reeve, are enhancing the membership experience away from the course.

I would also like to thank Robin Taylor for his work. On any one day he can be seen out on the course discussing new bunkers with Richard, in the bistro discussing food and wine with Steven or in a meeting with Craig discussing numbers. Even so he still has time to discuss any matters we might raise with him and he never appears harried.

Finally, I would like to thank my Committee for their work throughout the year. Four ladies are new to the committee this year and I congratulate them on their commitment, enthusiasm and humour. Thank you to all the lady members for the support they give and their willingness to help as required. It makes my role much easier and a pleasure.

Susan Nicholas Ladies President

KENDAL BINNS FOUNDATION REPORT

It was another excellent year in the foundation’s mission to support the development of our junior members. The foundation again thanks:

All the members who continue to donate to the foundation Rachel Bailey for her excellent running of the junior program Thornleigh Golf Centre

The board of Pennant Hills and the office staff

1, Thanks to the continued support of our members we were able to support 18 Pennant Hills Juniors and still remain with $15,315.48 in the bank as of 29 June, 2017. This compares with $25458.25 at a similar time last year. However, the 2016 balance did not include $5255 for subscriptions due in 15/16 and paid in August of this financial year, nor does the 2017 balance include over $5000 in donations still held by the Australian Sports Federation.

The number of donors to the Foundation in 2016/2017 was 29. We thank them. However, as the junior program continues to grow, so will the pleasant but costly support necessary to continue the development of long term members of Pennant Hills. We are looking forward to this, but are hoping for an increase in the number of donors as we can see a time when our yearly donations do not match our yearly overheads.

2. The Sunday clinic program, which is so well run by Rachel Bailey continues to develop young players into becoming active playing members. For example, we now have juniors playing in regular competitions: Olivia Kerr, James Skoudas, Hamish Murray, Tom Davey, Issy Barker, Adhitya Nair,and Ryan Richards. More importantly, Rachel believes many of the current clinic participants will soon be ready to begin playing in competition events.

Besides the increase in juniors playing regularly, most have improved their golfing ability. For example, Olivia Kerr has been accepted into the Jack Newton skills program and James Skoudas and Hamish Murray are currently members of the Eric Apperley representative team.

Finally, the foundation remains committed to improving both the standard of our juniors play, and ensuring that they conduct themselves in a manner that makes all members of Pennant Hills proud.

3. All 18 supported juniors have a minimum of $100 to spend at Thornleigh Golf Centre. This $100 is a shared cost between the foundation and Thornleigh. Our premise is that the young people will want to continue playing golf if they continue to improve.

4. Again we realise the board through Allan and John continue to support the foundation and it realises the immediate and long term benefits from the foundations activities. Craig Usher, the club’s accountant, continues to spend long hours meeting the changing demands of the Australian Sports Foundation’s continuing requests for financial information. Kim Truiijens, our club receptionist continues to find time to support the foundation in the many time consuming details never envisioned when the program began.

The trustees of the KBJF continue to be: Ed Truscott, Amanda Stubbs, Nicki Howlett, Graeme Martin. They welcome any opportunity to discuss what is happening in the foundation.

Ed Truscott Chairperson, Kendal Binns Foundation

EX-SERVICE SECTION REPORT

Our 2016 ex-services day held on Sat 6th August was a great success. The weather in the lead up was not kind and due to the heavy rain the course was in no condition to take carts. This meant that some 25 members were unable to play. Nonetheless from a field of 174 generous Pennant Hills golfers we have been able to make a donation of $5110 which together with $1140 in direct donations from our ex-service members resulted in a total contribution in 2016 of $6250 to Legacy.

The half way sustenance of Bully Beef and Damper Rolls, washed down with the traditional gunfire breakfast of Rum and Coffee was appreciated by many and is said to have improved the second nine for a number of players; especially the double nippers. Chef Brett Williams assisted by Events Coordinator, Siobhan Reeve were responsible for the arrangements and quality of the food. Beecroft Rotary provided volunteers to serve golfers at the half way and their contribution to the fun and financial outcome is appreciated. Thankyou Peter and Kay Holst with Jim and Paulette DeMartin.

A major part of the funds raised come from the persuasive powers of Terry Gilchrist and John Anderson who were running a book on the accuracy of players hitting on to the 18th tee. They raised a record $2222 and without offending anyone, remarkable. Terry and John have been managing the 18th green for the exservices day for a number of years and 2016 was their swansong. The Ex-Service members, the Club and of course Legacy are grateful to Terry and John for their indefatigable work and talent to encourage players to punt on their ability to place their ball near to the pin and if they do, accept their winnings in raffle tickets in lieu of cash. Legacy volunteers; Dennis Zalunardo, Allan Meaker, Julie Bowden, Bob Maddell, Bruce Jenkin and Eric Watson were on hand to help Terry and John with the raffle tickets won on the 18th.

Brian Hamilton read the Ode from Laurence Binyon’s 1914 poem and invited the clubhouse to observe the traditional minute’s silence prior to the prize giving. The Remembrance Trophy donated by the Waterson family was presented by Terry to Don Allen with a stableford score of 42. The Ex-Servicemen’s trophy was won by Peter Sprowles.

The winning members 4 ball team with a score of 54 was won by Greg Winters, Don Allen, Glen Petersen and Ross Ingleton. In a moving acceptance speech Ross related his own fortunate involvement as a legatee and beneficiary as a young man of the work Legacy do in assisting widows and families of serving servicemen. It was a gentle and sincere reminder to us all of the underlying motivation of PHGC to recognise our members who have served their country as well as assisting the work of Legacy in caring for the families of veterans who have died or become incapacitated.

The winning Ex-Service 4 ball team was Daniel Boys, Mark Boys, Lucas Frey and John Collins with a score of 48. The A Grade, B Grade, C Grade and Scratch trophy winners were Andy Haigh, Graeme Roberts, Bora Dincel and Andrew Richards respectively.

There are a number of demanding and administrative arrangements that need to be capably carried out to make this day a success and the ex-services committee is grateful to Geoff Black and the pro shop team, Craig Usher and Kim Truijens in the office, as well as our resourceful and ever cheerful bar staff.

The PHGC Ex Services day has been managed by Geoff Lumsden for some 18 years however as Geoff was wrestling with some health problems he passed the baton this year to a new committee led by Michael Rowan. It needs to said that Geoff has worked hard to ensure this event is enjoyable and that it is firmly established in the PHGC calendar. We are all grateful to Geoff for his untiring efforts and enthusiasm for the ex-services day and Remembrance Trophy. This was the 88th year of this golf day, long may it continue.

The main access to PHGC club is through the Returned Servicemen’s Memorial Entrance. This was opened 60 years ago in 1956. Over time the ex-service committee has been conscious that at some point major repair, refurbishment or replacement might be necessary to preserve this important part of our heritage. With this in mind the committee have, over the years, allocated a proportion of money raised on the day to a special fund to ensure this can happen without over reliance on the Clubs’ capital expenditure budget. This year the committee have elected to donate an additional $1000 to the fund bringing it to $12,500.

Michael Rowan Chairperson, Ex–Service Committee

DIRECTORS’ REPORT

The directors present their report together with the financial report of Pennant Hills Golf Club Limited (“the Company”) for the year ended 30 June 2017 and the auditor’s report thereon.

Directors

The Directors of the Company at any time during or since the end of the financial year are:

Information on Directors

Directors Names

Occupation Year elected

Resignations and Appointments

C. Allen Retired 2016 Appointed 31/10/16

J. A. Buchanan Company Director 2008

V. De Carvalho Medical Practitioner 2013

A. M. Goodrick Property Lawyer 2016 Appointed 31/10/16

E. C. Gotham Chartered Accountant 2014 Resigned 31/10/16

P. D. Henry Business Consultant 2014

R. W. Howarth General Manager - Media 2010

M. K. Shepherd Retired – IT & Marketing 2010 Resigned 31/10/16

D. P. Stanton Architect 2015

A. L. Stubbs Company Director 2011

A. J. Watson Chartered Accountant 2011

Directors have been in office since the start of the financial year to the date of this report unless otherwise stated.

Directors Names Sub Committee

Responsibilities

C. Allen Business & Strategy (Chairperson), Course, Playing & Match, Clubhouse

J. A. Buchanan Playing & Match (Chairperson), Business & Strategy and Course.

V. De Carvalho Course (Chairperson), Membership & Marketing, Playing & Match.

A. M. Goodrick Playing & Match, Membership & Marketing, Clubhouse

P. D. Henry Membership & Marketing (Chairperson), Clubhouse Experience, R. W. Howarth Clubhouse (Chairperson).

D. P. Stanton Clubhouse, Membership & Marketing, Clubhouse Experience, Business & Strategy

A. L. Stubbs Clubhouse Experience (Chairperson), Course, Playing & Match, Membership & Marketing.

A. J. Watson As President is an ex-officio member of all Committees

Company Secretary

Dr Robin Taylor, holds the position of Company Secretary and General Manager of Pennant Hills Golf Club. Dr Taylor has been Company Secretary and General Manager for four years after joining the Club from Centennial Park Trust where he held the position of Manager Sport and Recreation. His previous management experience includes senior management roles with Sydney Airports Corporation and NRMA Motoring and Services.

Principal activities

The principal activities of the Company during the financial year were the administration and operation of a golf course and a licensed social club for members of the Company.

These activities provided the foundation for the achievement of the short and long term objectives of the Company.

There have been no significant changes in the nature of these activities during the year.

Short-term objectives

The Company’s short-term objectives are to enhance:

 The quality of the golf course.

 Member facilities including the club house.

 The golfing community demand for membership of the Company.

 Member satisfaction and participation in club activities.

Long-term objectives

The Company has the following long-term objectives:

 Continue to operate as a private golf club.

 Provide for members and their families and friends an environment where everyone can: feel welcome and safe; enjoy camaraderie; and belong.

 Strengthen the financial sustainability of the Company.

Strategies to achieve Objectives

The Company is pursuing the following strategies to achieve its objectives:

 Review of core member services to identify and deliver services that foster member camaraderie and satisfaction and make the club attractive to new members.

 Strengthening of sales and marketing focus to deliver additional revenue that has minimum impact on existing member activities.

 Refining membership categories to assist existing member retention and recruitment of new members.

 Implementation of operational efficiency programs to reduce fixed operating expense levels.

 Implementation of programs to ensure efficient use of the Company’s physical assets.

 Development of a capital funding plan for the club house improvement and physical plant required to support the objectives.

 Implementation and refinement of the master plan for the ongoing development of the course

 Review of the club’s governance and management structures to support the objectives.

Measurement of Performance

Management provides the Board with monthly operational reports for the Company activities which include the key performance indicators of financial results against budgeted outcomes, details of course maintenance and improvements activities, outline of member playing and social activities and changes in membership numbers and categories.

Directors’ meetings

The number of directors’ meetings and number of meetings attended by each of the directors of the company during the financial year are:

Statement of Comprehensive Income

The accompanying Notes form part of these Financial Statements and should be read in conjunction herewith.

Balance Sheet

Statement of Changes in Equity

For the year ended 30 June 2017

4,591,305

4,781,934

4,957,72715,316 4,973,043

Cash Flow Statement

For the year ended 30 June 2017

Notes to the financial statements For the year ended 30 June 2017

The financial report is for Pennant Hills Golf Club Limited as an individual company, incorporated and domiciled in Australia. Pennant Hills Golf Club Limited is a company limited by guarantee.

Note 1: Statement of significant accounting policies

Nature of operations

Pennant Hills Golf Club’s principal activity was to provide golf facilities to members.

Basis of preparation

The financial report is a general purpose financial report that has been prepared in accordance with Australian Accounting Standards - Reduced Disclosure Requirements, Australian Accounting Interpretations, the Corporation Act 2001 and the Registered Clubs Amendment Act 2006. Pennant Hills Golf Club Limited is a not-for-profit entity for the purpose of preparing financial statements.

Australian Accounting Standards set out accounting policies that the AASB has concluded would result in a financial report containing relevant and reliable information about transactions, events and conditions. Material accounting policies adopted in the preparation of this financial report are presented below and have been consistently applied unless otherwise stated.

The financial report has been prepared using the measurement bases specified by the Australian Accounting Standards for each type of asset, liability, income and expense. The measurement bases are described in the accounting policies below.

The financial report was authorised for issue on the 28th August 2017 by the board of directors.

Accounting policies

(a) Income tax

No provision for income tax has been raised as the Company is exempt from income tax under Division 50 of the Income Tax Assessment Act 1997.

(b) Inventories

Inventories are measured and carried at the lower of cost and current replacement cost.

(c) Property, plant and equipment

(i) Recognition and measurement

Items of property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses.

Cost includes expenditure that is directly attributable to the acquisition of the asset. The cost of selfconstructed assets includes the cost of materials and direct labour, any other costs directly attributable to bringing the assets to a working condition for their intended use, the costs of dismantling and removing the items and restoring the site on which they are located, and capitalised borrowing costs. Cost also may include transfers from other comprehensive income of any gain or loss on qualifying cash flow hedges of foreign currency purchases of property, plant and equipment. Purchased software that is integral to the functionality of the related equipment is capitalised as part of that equipment.

When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment.

Notes to the financial statements For the year ended 30 June 2017

Note 1: Statement of significant accounting policies (continued)

(c) Property, plant and equipment (continued)

Gains and losses on disposal of an item of property, plant and equipment are determined by comparing the proceeds from disposal with the carrying amount of property, plant and equipment and are recognised net within other income in profit or loss. When revalued assets are sold, the amounts included in the revaluation reserve are transferred to retained earnings.

(ii) Subsequent costs

The cost of replacing a part of an item of property, plant and equipment is recognised in the carrying amount of the item if it is probable that the future economic benefits embodied within the part will flow to the Company, and its cost can be measured reliably. The carrying amount of the replaced part is derecognised. The costs of the day-to-day servicing of property, plant and equipment are recognised in profit or loss as incurred.

(iii) Depreciation

Depreciation is calculated over the depreciable amount, which is the cost of an asset, or other amount substituted for cost, less its residual value.

Depreciation is recognised in profit or loss on a straight-line basis over the estimated useful lives of each part of an item of property, plant and equipment, since this most closely reflects the expected pattern of consumption of the future economic benefits embodied in the asset. Leased assets are depreciated over the shorter of the lease term and their useful lives unless it is reasonably certain that the Company will obtain ownership by the end of the lease term. Land is not depreciated.

The estimated useful lives for the current and comparative periods are as follows:

Buildings 40 years

Plant and equipment 3 - 20 years

Depreciation methods, useful lives and residual values are reviewed at each financial year-end and adjusted if appropriate.

(d)

Leases

Where the Company is a lessee lease payments for operating leases, where substantially all the risks and benefits remain with the lessor, are charged as expenses in the periods in which they are incurred.

(e)

Impairment of assets

At each reporting date, the Company reviews the carrying values of its tangible and intangible assets to determine whether there is any indication that those assets have been impaired. If such indication exists, the recoverable amount of the asset, being the higher of the asset’s fair value less costs to sell and value in use, is compared to the asset’s carrying value. Any excess of the asset’s carrying value over its recoverable amount is expensed to the income statement.

Where it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Notes to the financial statements For the year ended 30 June 2017

Note 1: Statement of significant accounting policies (continued)

(f) Employee benefits

Short-term

employee benefits

Short-term employee benefits are benefits, other than termination benefits, that are expected to be settled wholly within twelve (12) months after the end of the period in which the employees render the related service. Short-term employee benefits are measured at the undiscounted amounts expected to be paid when the liabilities are settled.

Other

long-term

employee benefits

The Company’s liabilities for long service leave are included in other long term benefits as they are not expected to be settled wholly within twelve (12) months after the end of the period in which the employees render the related service. They are measured at the present value of the expected future payments to be made to employees.

The expected future payments incorporate anticipated future wage and salary levels, experience of employee departures and periods of service, and are discounted at rates determined by reference to market yields at the end of the reporting period on high quality corporate bonds that have maturity dates that approximate the timing of the estimated future cash outflows. Any re-measurements arising from experience adjustments and changes in assumptions are recognised in profit or loss in the periods in which the changes occur.

The Company presents employee benefit obligations as current liabilities in the statement of financial position if the Company does not have an unconditional right to defer settlement for at least twelve (12) months after the reporting period, irrespective of when the actual settlement is expected to take place.

(g) Provisions, contingent liabilities and contingent assets

Provisions are measured at the estimated expenditure required to settle the present obligation, based on the most reliable evidence available at the reporting date, including the risks and uncertainties associated with the present obligation. Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. Provisions are discounted to their present values, where the time value of money is material.

Any reimbursement that the Company can be virtually certain to collect from a third party with respect to the obligation is recognised as a separate asset. However, this asset may not exceed the amount of the related provision.

No liability is recognised if an outflow of economic resources as a result of present obligation is not probable. Such situations are disclosed as contingent liabilities, unless the outflow of resources is remote in which case no liability is recognised.

(h) Revenue and other income

Revenues are recognised at fair value of the consideration received.

Revenue from sales of goods comprises revenue earned from the provision of food and beverage facilities, and the sale of golf equipment. Revenue is recognised when the goods are provided.

Revenue from rendering services comprises revenue services to Members and other patrons of the Company

Revenue from interest is recognised using the effective interest rates method, which for floating rate financial assets is the rate inherent in the investment.

Note 1: Statement of significant accounting policies (continued)

(h)

Revenue and other income (continued)

Revenue from rental income relating to the telecommunications tower lease is recorded on a straight line basis over the term of the lease.

Kendal Binns fund donations and contributions made are credited to the Kendal Binns fund in the year in which they are made.

All revenue is stated net of the amount of goods and services tax (GST).

(i) Borrowing costs

Borrowing costs other than those that relate to the acquisition of qualifying assets are recognised in income in the period in which they are incurred.

(j)

Goods and services tax

Revenues, expenses and assets are recognised net of the amount of goods and services tax (GST). Receivables and payables in the balance sheet are shown inclusive of GST.

Cash flows are presented in the Cash Flow Statement on a gross basis, except for the GST component of investing and financing activities, which are disclosed as operating cash flows.

(k)

Subscriptions in advance

The Subscriptions in advance balance in Note 12 consists of 2018 membership subscriptions received prior to 30 June.

(l) Deferred

income

The liability for deferred income is the unutilised amounts of telecommunications tower rental received on the condition that specified conditions are fulfilled. Where the amount received is in respect of rental is to be provided over a period that exceeds twelve (12) months after the reporting date, the liability is discounted and presented as non-current.

(m) Comparative figures

When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial year.

(n) Critical accounting estimates and judgments

The directors evaluate estimates and judgments incorporated into the financial report based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and within the Company.

The Company assesses impairment at each reporting date by evaluating conditions specific to the Company that may be indicative of impairment triggers. Recoverable amounts of relevant assets are assessed using value-in-use calculations which incorporate various key assumptions.

During the prior reporting period, the Company changed the discount rate used in measuring its other long term employee benefits (annual leave and long service leave) from the Australian government bond rate to the high quality corporate bond rate. This change was necessitated by developments in the Australian business environment that confirmed there is a sufficiently observable, deep and liquid market in high quality Australian corporate bonds to satisfy the requirements in AASB 119 Employee Benefits. The Company has concluded that this change is a change in accounting estimates in accordance with AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors.

Notes to the financial statements For the year ended 30 June 2017

Note 1: Statement of significant accounting policies (continued)

(o)

Financial instruments

Financial assets and liabilities are recognised when the Company becomes a party to the contractual provisions of the financial instrument, and are initially measured at fair value adjusted by transaction costs.

Financial assets are derecognised when the contractual rights to cash flows from the financial asset expire, or when the financial asset and all subsequent risks and rewards are transferred. A financial liability is derecognised when it is extinguished, discharged cancelled or expires.

Classification and measurement of financial assets

For the purposes of subsequent measurement financial assets of the Company are classified as loans and receivables. All financial assets are subject to review for impairment at least at each reporting date to determine if there is objective evidence that a financial asset is impaired. All income and expenses relating to financial assets that are recognised in profit and loss are presented within finance costs or finance income except for impairment of trade receivables which is presented within other expenses.

Loans and receivables are non-derivative financial assets with fixed or determinable payments. After initial recognition these are measured at amortised cost using the effective interest method, less provision for impairment. Discounting is omitted where the effect is immaterial. The Company’s trade and other receivables fall into this category of financial instruments.

Classification and measurement of financial liabilities

The Company’s financial liabilities include trade and other payables.

Financial liabilities are measured subsequently at amortised cost using the effective interest method. All interest related charges, and if applicable, changes in an instruments fair value that are reported in profit and loss are included within finance costs or finance income.

(p) New accounting standards for application in future periods

A number of new standards, amendments to standards and interpretations are effective for annual reporting periods beginning after 1 July 2016 and have not been applied in preparing these financial statements. None of these is expected to have a significant effect on the financial statements of the company.

- AASB 2014-4: Amendments to Australian Accounting Standards – Clarification of Acceptable Methods of Depreciation and Amortisation – only clarifies that revenue-based methods are prohibited, which are not followed by the Company;

- AASB 2015-1: Amendments to Australian Accounting Standards – Annual Improvements to Australian Accounting Standards 2012-2014 Cycle – mostly editorial amendments and allowance of a discount rate on government bonds in the absence of a deep market in corporate bonds only for post-employment benefits, which the Company does not hold as at the end of the reporting period.

Notes to the financial statements

For the year ended 30 June 2017

Note 2: Revenues / expenses from ordinary activities

Notes to the financial statements

For the year ended 30 June 2017

Note 2: Revenues / expenses from ordinary activities (continued)

Notes to the financial statements

For the year ended 30 June 2017

Note 3: Auditor’s remuneration $ $

Note 4: Trade and other receivables

Current trade receivables are non-interest bearing. A provision for impairment is recognised when there is objective evidence that an individual trade receivable is impaired. These amounts have been included in the other expenses item.

(ii) Provision for impairment of receivables

Note 5: Inventories

Notes

to the financial statements For the year ended 30 June 2017

Note 6: Other assets

Note 7:

9,5002,206,8052,001,178423,253 4,640,736

In accordance with Section 41J of the Registered Clubs Amendment Act 2006 the Directors have determined that all freehold land and buildings held by the Club forms part of the Club’s premises and the facilities provided by the Club are for the use of its members and is therefore core property.

The Valuer General land value at 1/7/16 was $5.5 million

Refer to Note 11 for details of security over property, plant and equipment.

Note 9: Provisions

Notes to the financial statements For

the year ended 30 June 2017

Note 8: Financial liabilities at amortised cost

A provision has been recognised for employee benefits relating to long service leave for employees. In calculating the present value of future cash flows of long service leave, the probability of long service leave being taken is based upon historical data. The measurement and recognition criteria for employee benefits have been included in Note 1 (f)

Note 10: Deferred income

In the 2015 financial year the Company leased the telecommunications tower site for 25 years. Rental for the 25 years has been received up front. In determining the correct treatment for the transaction the Company has taken a view that the monies received are in the nature of a receipt of future rental income. Consistent with the Company’s treatment of other deferred income received in advance the amount received is being released to revenue on a straight line basis over the full term of the lease period. Deferred income received which will not be released in the next year is treated as long term deferred income.

Notes to the financial statements For the

Note 11: Borrowings Security

The Company’s banker continues to hold registered first mortgages and floating charges over the assets.and uncalled capital of the Company.

Note 12: Other liabilities

Note 13: Kendal Binns junior foundation reserve

The Company has established a foundation for the development of promising junior members. The monies raised by way of donations from members and contributions from Club activities are held specifically for the foundation. The foundation is administered by a committee comprising four members of the Company. The foundation funds are solely for the benefit of nominated junior members and are not available for the general operations of the Company. Unspent monies at the close of the financial year being the opening position for the year plus the contributions and less expenditure on junior members for the year are represented in the Kendal Binns foundation reserve in the Members funds. The underlying cash is held in a separate bank account and recorded in Cash and cash equivalents. During the year net proceeds / (utilisation) of contributions of ($10,144) (2016: ($2,028)) were transferred into / (from) the reserve.

Notes to the financial statements

For the year ended 30 June 2017

Note 14: Related parties

(a) Key management personnel

Key management personnel of the Company are those persons having authority and responsibility for planning, directing and controlling activities of the Club.

(b) Transactions with related parties

The company incurred no transactions with related parties.

Notes to the financial statements For the year ended 30 June 2017

Note 15: Notes to the statement of cash flows

a) Reconciliation of cash

For the purposes of the statement of cash flows, cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. Bank overdrafts are shown within short-term borrowings in current liabilities on the balance sheet

b) Reconciliation of cash flow from operations . . with profit after income tax Profit/(loss) after income tax

Add/(less) items classified as investing/ financing activities: Profit on sale of non-current assets (4,545) -

Add/(less) non-cash items:

Net cash provided by operating activities before change in assets & liabilities

Change in assets and liabilities (Increase)/decrease in receivables (11,746) 76,724 (Increase)/decrease in inventories (1,858) (21,992) (Increase)/decrease in other assets 14,954 (16,665) Increase/(decrease) in accounts payable (125,694) 79,977

Increase/(decrease) in other liabilities

(286,804)

Notes to the financial statements For the year ended 30 June 2017

Note 16: Fair value measurement

Net fair values

Fair value estimation

The fair values of financial assets and financial liabilities are presented in the following table and can be compared to their carrying values as presented in the balance sheet. Fair values are those amounts at which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length transaction.

Fair values derived may be based on information that is estimated or subject to judgment, where changes in assumptions may have a material impact on the amounts estimated. Areas of judgment and the assumptions have been detailed below.

The fair values disclosed in the above table have been determined based on the following methodologies: (i) Cash and cash equivalents, trade and other receivables and trade and other payables are short-term instruments in nature whose carrying value is equivalent to fair value. Trade and other payables exclude amounts provided for relating to annual leave and deferred income which is not considered a financial instrument.

Notes to the financial statements For the year ended 30 June 2017

Note 17: Segment reporting

The Company operates predominantly in the hospitality, sporting and entertainment industry.

The Company’s operations and customers are located predominantly in Sydney, New South Wales. The Company provides golfing facilities, food, beverage and other entertainment facilities to Members and guests.

Note 18: Company details

The Company is incorporated and domiciled in Australia as a company limited by guarantee. In accordance with the Constitution of the Company, every Member of the Company undertakes to contribute an amount limited to $2.00 per Member in the event of the winding up of the Company during the time that they are a Member or within one year thereafter. At 30 June 2017 there were 1,625 members.

The registered office and principal place of the Company is:

Copeland Road, Beecroft NSW 2119

Note 19: Contingent liabilities

There are no contingent liabilities that have been incurred by the Company in relation to 2017 or 2016.

Note

20: Events after the balance sheet date

There have been no significant events since the end of the financial year up to the date of this report.

The financial report was authorised for issue on 28th day of August 2017 by the Board of Directors.

Note

21: Reporting requirements - Registered Clubs Act 1976

The Club maintains a register in accordance with the Registered Clubs Act 1976. This register is available for members to view on appointment at the front office.

Summarised Income Statement

For the year ended 30 June 2017

Summarised Income Statement

For the year ended 30 June 2017

Summarised Income Statement

For the year ended 30 June 2017

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